The City of Jefferson has officially been awarded a grant in support of a new housing project on the downtown square.

The City received a $435,000 Community Development Block Grant from the Iowa Economic Development Authority for an upper story housing conversion project. The grant funds will be used to convert three upper story apartments at 200 East State Street in Jefferson. The City Council had approved Region XII Council of Governments as the grant administrator at their regular meeting on July 14th. The Council also approved a five-year forgivable loan agreement with developer Chris Deal to do the project and then own the property.

The Council also approved a $250,000 purchase agreement with Deal for the property, which was contingent upon receiving the grant. The apartments would be located above Heartland Bank and the new coworking business, Gravitate. Jefferson was one of 21 communities that were awarded a portion of the $8.8 million CDBG program through IEDA.